Source: Radius Care
Last week the Government proposed changes to the Retirement Villages Act. These reforms will influence how older New Zealanders manage their homes, finances and living arrangements. As the Founder and Executive Chairman of Radius Care, I want to be clear about where we stand. Radius Care supports the reforms outlined in last week’s announcement.
There has been strong debate about the new rules for returning capital, including the proposed 12-month buy-back requirement and the accrual of interest after six months. While I recognise these are real pressure points for some operators, for Radius Care the impact will be negligible.
At our villages, weekly fees already stop as soon as someone leaves one of our homes.
We resell property and return the capital to families as quickly as we can, and our recent performance shows it. In the last 12 months and across our village units at Radius Clare House, Radius Elloughton Gardens, Radius Matamata Country Lodge and Radius Windsor Court, the weighted average resale time was under five months (149 days). This means the people living with Radius Care typically receive their capital well within a six-month timeframe – that’s half the time the proposed RVA changes recommend.
Our residents deserve access to their own money without long delays. Their capital underpins their future choices, and those choices shape how entire multigenerational families determine where to live and how to structure their lives.
Returning capital is manageable. Within the five-month average, Radius Care also honours a one-month stand-down between a resident leaving and the start of the sales process. We also refurbish the villa, apartment or unit so it is ready for market, ensuring a clean, safe and high-quality home for the next resident.
Radius Care’s core business is healthcare, not large-scale retirement property. Because our operations are centred on high-quality aged residential care, we are not exposed to the same risks as the bigger retirement operators.
Our care homes outnumber our villages, and our retirement units are tightly managed and highly desired. Demand is strong because families know we deliver exceptional aged residential care, and many see our retirement units as a pathway to later-stage support. And this support is what Kiwis really need, full time hospital level care in a place they can call home.
We also recognise the wider sector concerns. Some operators will struggle with a fixed buy-back timeline, especially in slower housing markets. This could affect cashflow, limit new development and reduce the number of future village and care beds. These issues deserve careful consideration as Parliament progresses the Bill.
Reform must strike the right balance and protect residents while keeping the sector strong enough to grow. New Zealand remains chronically short of care beds, particularly in regional areas. Our country needs more high-quality care options, not fewer.
To everyone who depends on Radius Care, please know this. We will continue working with Government and sector partners to support practical, balanced rules that work for residents, families and providers alike. We support improvements to clarity and fairness. And we support our residents’ rights to their own money.
Any proposed changes will not materially affect the day-to-day running of our care homes or the lives of our residents and their families. We look forward to continuing to provide New Zealanders with the best care in the country.
